Circle Internet Group (CRCL) Could Be 22% Undervalued After The Tereina SAP Partnership
Tereina’s new partnership with Circle Internet Group (CRCL) to plug USDC and EURC directly into SAP Cloud ERP puts stablecoin payments inside existing enterprise workflows, which gives stock investors a fresh event to reassess the business.
Circle Internet Group’s tie up with Tereina comes on top of a busy stretch that includes a Volante collaboration, Samsung Wallet support for USDC transfers, and CFO plus board changes. However, the stock tells a mixed story, with a 90 day share price return of 22.23% but a 1 year total shareholder return that declined 46.28%. Recent 30 day share price weakness of 15.95% suggests momentum has cooled even with these new partnerships in focus.
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Circle Internet Group now sits between fresh enterprise traction and a share price that has slipped over the past month. Does that combination still offer enough upside potential for the risks, once the current valuation is unpacked?
Most Popular Narrative: 21.9% Undervalued
On the latest framework, the most followed narrative sees Circle Internet Group trading below a fair value of $103.55 compared with the last close at $80.84. This puts fresh weight on the new Tereina and SAP Cloud ERP partnership as a potential swing factor for the story.
Launch and commercialization of Arc as an enterprise grade economic operating system with a potential native token and participation from major institutions such as BlackRock, HSBC and Visa can add new high margin infrastructure revenue streams and deepen USDC network effects, supporting long term EBITDA margin expansion.
See why 56 investors see Circle Internet Group as 22% undervalued.
Result: Fair Value of $103.55 (UNDERVALUED)
Still, the Circle Internet Group story can change quickly if USDC reserve income weakens or new euro stablecoins squeeze EURC in key markets.
Find out about the key risks to this Circle Internet Group narrative.
Next Steps
Mixed messages in the Circle Internet Group story so far. Act quickly, review the key data points yourself, and weigh the 3 key rewards and 3 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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